The Muslim Commercial Bank (MCB) has introduced Islamic Banking in Multan, and opened its first branch to facilitate the people of this region introducing "Riba free " Islamic investment deposit scheme with objectives to earn 'Halal' profits in strict conformity with the principles of the Shariah.
General Manager Islamic Banking, MCB, Rashid Rehman, Shariah Advisor, Dr Zubair Osman and In-charge Islamic Credit Shahid Anwar stated this in a seminar on Sunday.
They said that the Islamic banking would cater to investment requirements of the people who want to invest their funds in Shariah complied Islamic mode of transactions.
The returns on investment are subject to the actual profit earned/loss suffered by Riba free joint pool account. The Al-Makhraj joint pool account carries a profit actually earned by it, therefore neither the principal, nor a rate of profit is guaranteed while loss will also be shared in proportion to investment.
The profit will be shared in the ratio of 80:20 or 70:30 between the clients and the bank after deducting the overhead costs.
The Islamic Banking 'Murabaha' involves purchase of a commodity by the bank on behalf of the client and its resale to the latter on a cost-plus-profit basis. 66 percent of all transactions in Islamic banking world-over are through Murabaha with the disclosure of cost and profit, they said.
The MCB chairman Mian Muhammad Mansha would inaugurate the Abdali Road Islamic Banking branch on Monday.
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